Hi,
The previous CPA I am taking over for would sometimes pay a clients IRS or state penalties if she thought the penalty was her fault.
It could be something major, or it could be a small underpayment penalty, or an estimated tax penalty.
Is there some kind of a consensus about this? What do you do in these situations?
After doing this for a little while, I am starting to feel that mistakes will always happen, and that it doesn't seem like a good business practice to pay client penalties. i.e. I am leaning more towards the stance of "yes I made a mistake but you hired me, and if it unacceptable to you then with all due respect you should find a new CPA".
Any thoughts?